Hi Imsfs and Floydage:
i just got interested in HFC and HEP and was reading the message board to see what the public owners have to say about both companies.
In my experience with MLPs and GPs (General partners) Most of the time the growth is packed into the GP's. Your 5 year chart shows that to you very clearly. In the HFC -HEP scenario it is advisable for HEP (A partnership) should normally be held in a NON IRA account because the distributions are sheltered. HFC is a regular corporation and the dividends are fully taxable so they normally should be held in an IRA to delay current taxation until you have to take funds out of your IRA.
Regarding the "humongous" dividends. HFC has been paying special dividends since the Holly-Frontier merger in 2011. The total 2013 payment will be $3.20 yilding 6.82% based on today's closing price of $46.91. The current annualized $1.97 distribution on HEP yields only 6.24% on todays closing price of $31.56.
I hope this helps.
Div_Man, I did add to my KMP, but just a few dozen shares to make my holdings an even 500 units. I have noticed KMP dipping a bit since we converted, but I have held this for a long time, so my basis is still pretty far below the current price. I have confidence in the quality of KMP management and assets, so will hang on. EVEP may turn around, but I would wait and see. I think we are on the verge of a boom in fracked oil and gas production with new technologies (interesting to read of pumping waste CO2 into oil wells instead of chemicals) and conversion of coal-fired power plants into gas-fired.
I have had increasing amounts of STON since 2004, so again, my basis is very low. I am almost to the point where the distributions have returned my entire investment, and that is going to complicate my taxes in ways I don't know yet.
Thanks for the tips, I'll take a look when I get a chance.
Hey Rocky, I was also a CPNO holder, since the buy-out KMP has been a Dog for us, did You add to your position?, I`ve thought about it but have not yet because of their poor performance. I`ve looked at both EVEP & STON, but did not buy. ACMP has been very good for me, made a double in this one & the talking heads say there is still more upside in it, at all time highs right now, take care!
Thanks for the tip on CLMT, div_man, I'll give it a good look. I have BBEP, EVEP, HEP, KMP (was CPNO), and STON. I also tend to be a long-term investor. EVEP is giving everyone grief this year, it has lost nearly 50% of its value. CPNO was great and got bought out by KMP, which is a big player. I've had STON for years, it rides up and down, but pays consistently, even though it creeps some people out owning a funeral home / cemetery company. Well, we baby boomers are not getting any younger....
Have a great Thanksgiving yourself and family.
Just put up a five year chart of HEP vs HFC. I bought the wrong product. Also have a position in AMJ and that is in neutral. MLP's are defiantly out of favor so I'm looking at other options.
Rocky, I`m a buy & hold investor, don`t plan on selling, may be a stupid way of doing things, but that`s just me. HEP seems to be making a little headway in the A.M. hours, maybe this will hold for us. I`m going to throw another one at You, CLMT, been a long term holder since Jan. of 10, seen good times & bad times, mostly from RIN expense brought on by the E.P.A., this is getting better & they are making a come back. Happy Thanksgiving to You & Family & may GOD continue to Bless!
Yes, I bought some BBEP earlier in the year and am happy with it. Some of my other MLPs are also in the doldrums or sinking, I wonder if people are moving out of MLPs and into more mainstream stocks. Personally, I want the income stream, but I get worried when the units lose value. With the complex calculation for capital gains on sales of units, however, maybe this just reduces your tax when you sell.
I agree with You 100% Rocky, its counter-part HFC has also been suffering, You may find BBEP interesting, they`ve just had a SPO plus made a new acquisition for oil over gas, looks like the PPS will finally start growing, also increased quarterly distribution which will be changing to monthly pay-out beginning Jan. of 14, also just received an upgrade to out-perform.
Isn't the trick to be here before the crowd?
The crowd will make the noise when they get here.
"Buy low- sell high" translates to "buy when no one else wants some" and "sell when the masses want more than there is available".
So what brings the crowd here? Time and better than expected quarterly reports plus a solid, growing dividend.
I bailed out a little too early on market loftiness, not the stock itself. Was a good gain nonetheless and those nice divvies, tax docs sucked though. A good one down the road for me if/when yet another Fed-induced bubble pops, so I keep watch. I don't recall HEP ever refining anything, just transport. Now HFC...
Good to see you`re still hanging on Mr. Floyd, I was beginning to think most everybody had moved on. Are you thinking about adding to your position?, looks like the EPA is lightning up on this RIN business, hopefully it will get better for all refiners.